Odaily Planet Daily report: On Wednesday, Neel Kashkari, President of the Minneapolis Fed and a 2026 FOMC voter, told CNBC that the Fed should now “begin gradually raising” interest rates to reduce inflation and avoid the need for larger rate hikes in the future. Kashkari was one of three FOMC voters who supported a 25-basis-point rate hike at last week’s meeting.
He stated that with strong corporate earnings, resilient consumer and labor markets, and no clear evidence that monetary policy has become significantly restrictive, it is time to begin gradually raising rates. He emphasized that this is not a call for large rate hikes, but rather a preference for “small steps” to avoid being forced into aggressive policy tightening later if inflation becomes entrenched. He added that it is uncertain what action the FOMC will take in September, and future data will be critical. Meanwhile, Kashkari said that Fed Chair Powell did not pressure him, telling him: “Do what you think is right for the economy.” (Jin10)